Capital Acquisitions Tax - Silent but Deadly
One tax which is currently largely ignored by many people but which is likely to have a much greater impact on client's estate values in the future is Capital Acquisitions Tax (gift/inheritance tax).
Since 2008 the rate of taxation on gifts and inheritances has increased from 20% to 25% and the tax free threshold for children has reduced from €521,208 to €332,084. It is likely that future budgets will continue the upward climb of this taxation intake either by a further increase in the rate or reduction in thresholds or combination of both.
It is therefore most important for clients to review their circumstances with a view to minimising the impact of this tax on the funds they have worked so hard to accumulate. We recommend that this review be carried out well in advance of the forthcoming budget.
Anyone with any concerns in this area should immediately contact Noel Murphy on 021 4310266 or firstname.lastname@example.org.